Investors want to invest in the stock market except for high returns in the future. But they are confused about where to invest. One best strategies that many investors focus on is fundamentally strong but undervalued stocks. In this blog post, we listed 10 fundamentally strong but undervalued stocks for you.
What are fundamentally strong but undervalued stocks?
Fundamentally strong but undervalued stocks are those that possess strong fundamentals but are trading at a price lower than their intrinsic values.
Chamanlal Setia Exports Ltd.
About Chamanlal Setia Exports Ltd:
Company: Chamanlal Setia Exports Ltd (CLSEL)
Industry: Rice Milling and Export
Founded: 1974
Headquarters: Amritsar, Punjab, India
Website: https://maharanirice.in/
Chamanlal Setia Exports Ltd. Is a consumer food sector company listed in both BSE and NSE engaged in the production of Basmati rice, Non basmati rice, and Special rice under the brand name Maharani. The company also introduced new products like diabetic and organic rice to expand its market reach.
| Market Cap | 1258.68 Cr. |
| PE | 9.67 |
| PB | 2.05 |
| Dividend Yield | 0.41% |
| Book Value | 118.88 |
| Cash | 45.42 Cr. |
| Debt | 120.59 Cr. |
| EPS | 25.15 |
| Sales Growth | 48.78% |
| ROE | 22.84% |
| ROCE | 27.96% |
| Profit Growth | 81.09% |
The market capitalization of the company is 1258.68 Cr., Total revenue is ₹ 1,112.83 Cr. And the profit after tax is 48.48 Cr.
Strengths
For the past 3 years, the company has shown a good profit growth of 30.89%.
For the past 3 years, the company has shown a good revenue growth of 20.26%
The company has been maintaining a healthy ROE of 22.84%.
For the past 3 years, the Company has been maintaining a healthy ROCE of 25.59%.
The company has a healthy Interest coverage ratio of 22.59.
The company has a healthy liquidity position with a current ratio of 4.27.
The company has a high promoter holding of 73.86%.
Weakness
The company has no Weaknesses as of now.
CLSEL’s financial position is a positive picture of a well-managed company with strong financial health, good liquidity, and efficient operations.
Crest Ventures Ltd.
About Crest Ventures Ltd.
Company: Crest Ventures Ltd
Industry: Non-Banking Finance Company (NBFC)
Founded: 1982
Headquarters: Mumbai, India
Website: crest.co.in
Crest Ventures Ltd. Is a Finance sector company listed in both BSE and NSE engaged in real estate, financial services, and investments.
| Market Cap | 2260.23 Cr. |
| PE | 29.66 |
| PB | 1.41 |
| Dividend Yield | 0.21% |
| Book Value | 335.92 |
| Operating Revenue | 815.61 Cr. |
| Net profit | 594.81 Cr. |
| EPS | 19.34 |
| Sales Growth | 2656.72 |
| ROE | 102.40% |
| ROCE | 112.05% |
| Profit Growth | 2165.64% |
The market capitalization of the company is 2260.23 Cr., total revenue of the company is 1132.16 Cr. And net profit after tax is 84.40 Cr.
Strengths
The company has maintained a healthy ROA of 21.43% in the last 3 years.
The company has a healthy ROE of 28.87%
The company has healthy ROCE of ROCE over the last 3 years.
The company has 185.64% of CAGR over the past 3 years.
The company delivered 362.77% of profit growth over the past 3 years.
Weakness
The company has no Weaknesses as of now.
CREST is a financially sound and highly profitable company with strong liquidity and moderate debt levels.
Godawari Power & Ispat Ltd.
Godawari Power & Ispat Ltd. GPIL is a steel & iron products sector company listed both in BSE and NSE and engaged in the production of Iron ore pellets, sponge iron, steel billets, ferro alloys, steel wires, and power.
About Godawari Power & Ispat Ltd.
Company: Godawari Power & Ispat Ltd (GPIL)
Industry: Steel
Founded: 1999
Headquarters: Raipur, Chhattisgarh, India
Website: hpslindia.com
| Market Cap | 10100.98 Cr. |
| PE | 29.04 |
| PB | 2.58 |
| Dividend Yield | 0.51% |
| Book Value | 302.44 |
| Cash | 650.45 Cr. |
| Debt | 142.96 Cr. |
| EPS | 66.21 |
| Sales Growth | 4.14% |
| ROE | 20.32% |
| ROCE | 31.33% |
| Profit Growth | 16.97% |
Strengths
For the past 3 years, the company has shown a good profit growth of 87.34%.
For the past 3 years, the company has shown a good revenue growth of 23.97%.
The company has significantly decreased its debt.
Over the past 3 years company has been maintaining a healthy ROE of 40.03%.
Over the past 3 years, the Company has been maintaining a healthy ROCE of 44.66%.
Weakness
The company has no weakness as of now.
GPIL is a financially strong and profitable company with good liquidity and no debt.
Greenpanel Industries Ltd.
About Greenpanel Industries Ltd
Industry: Wood panel manufacturing
Founded: 1999
Headquarters: Kolkata, India
Website: https://www.greenpanel.com/
Greenpanel Industries Ltd. Is a wood & wood products sector company listed in both BSE and NSE is engaged in the manufacturing of Medium-density fiberboard (MDF), plywood, veneers, flooring, and doors. The company has more than 3000 outlets throughout India.
The company uses 100% renewable Agro forestry wood in its MDF products, which can help to reduce deforestation.
| Market Cap | 4662.29 Cr. |
| PE | 29.22 |
| PB | 3.57 |
| Dividend Yield | 0.39.% |
| Book Value | 106.57 |
| Cash | 855.81 Cr. |
| Debt | 190.43 Cr. |
| EPS | 13.95 |
| Sales Growth | 9.75 % |
| ROE | 21.02% |
| ROCE | 25.21% |
| Profit Growth | -1.46 % |
Strengths
Over the past 3 years, the company has shown a good profit growth of 142.13%.
Over the past 3 years, the company has shown a good revenue growth of 27.52%.
The company has significantly decreased its debt.
Over the past 3 years, the company has been maintaining a healthy ROCE of 21.87%.
Weakness
Till now the company had no weakness.
GREEN PANEL is a well-managed company with strong financial health, good liquidity, and low debt.
Panama Petrochem Ltd.
About Panama Petrochem Ltd.
Industry: Petroleum specialty products
Founded: 1982
Headquarters: Mumbai, Maharashtra, India
Website: https://panamapetro.com/
Panama Petrochem Ltd. Is a Lubricant sector company listed in both BSE and NSE, engaged in the manufacture of White oil/liquid paraffin oil, petroleum jelly, transformer oil, rubber process oil, industrial oils and greases, drilling fluids, and others.
The has a strong presence in India as well as exports its products to over 50 countries around the world.
The products of the company are used in a variety of applications, including inks and resins, printing, textiles, rubber, pharmaceuticals, cosmetics, power, cables, and other industrial purposes.
| Market Cap | 2169.30 Cr. |
| PE | 16.85 |
| PB | 2.69 |
| Dividend Yield | 2.23 % |
| Book Value | 138.25 |
| Cash | 169.26 Cr. |
| Debt | 0 Cr. |
| EPS | 21.28 |
| Sales Growth | 10.96 % |
| ROE | 15.97 % |
| ROCE | 25.21 % |
| Profit Growth | 5.35 % |
Strengths
Over the past 3 years, the company has shown a good profit growth of 114.78%.
Over the past 3 years, the company has shown a good revenue growth of 28.06%.
Over the past 3 years, the company has been maintaining a healthy ROE of 27.82%.
Over the past 3 years, the company has been maintaining a healthy ROCE of 38.26%.
The company has zero debt.
Weakness
there is no weakness in the company till now.
PAPT is a financially strong and well-managed company with strong liquidity, zero debt, and good profitability.
Rashtriya Chemicals & Fertilizers Ltd.
About RCF:
Industry: Fertilizer and chemical manufacturing
Founded: 1978
Headquarters: Mumbai, Maharashtra, India
Website: https://www.rcfltd.com/
Rashtriya Chemicals & Fertilizers Ltd (RCF) is a fertilizers public sector company listed in both BSE and NSE, engaged in the manufacturing of Urea, complex fertilizers, bio-fertilizers, micro-nutrients, industrial chemicals (methanol, ammonia, nitric acid, etc.)
The company is involved in promoting the use of bio-fertilizers and adopting environment-friendly technologies.
| Market Cap | 8236.70 Cr. |
| PE | 27.32 |
| PB | 1.75 |
| Dividend Yield | 3.55 % |
| Book Value | 85.67 |
| Cash | 64.53 Cr. |
| Debt | 1862.65 Cr. |
| EPS | 5.47 |
| Sales Growth | 67.43 % |
| ROE | 6.39 % |
| ROCE | 14.17% |
| Profit Growth | 37.31% |
RCF is a financially stable company with moderate liquidity and debt levels. Profitability is decent, and returns on capital are good.
Strengths
Over the past 3 years, the company has shown a good profit growth of 66.87%.
Over the past 3 years, the company has shown a good revenue growth of 30.29%.
TGV Sraac Ltd.
About TGV Sraac Ltd.
Company: TGV SRAAC LIMITED (formerly Sree Rayalaseema Alkalies and Allied Chemicals Ltd.)
Founded: 1981
Headquarters: Kurnool, Andhra Pradesh, India
Industry: Chemicals
Website: https://www.tgvgroup.com/
TGV SRAAC Ltd is the flagship company of the TGV Group a chemical sector company listed both in BSE and NSE, and Engaged in the production of Chlor-Alkali products in India and also manufactures Castor Derivatives and Fatty Acids.
| Market Cap | 1089.10 Cr. |
| PE | 12.78 |
| PB | 1.00 |
| Dividend Yield | 0 % |
| Book Value | 102.81 |
| Cash | 62.38 Cr. |
| Debt | 214.69 Cr. |
| EPS | 7.96 |
| Sales Growth | 52.47 % |
| ROE | 7.85 % |
| ROCE | 38.65 % |
| Profit Growth | 169.14 % |
Strengths
Over the past 3 years, the company has shown a good profit growth of 96.07.
Over the past 3 years, the company has shown a good revenue growth of 30.76%.
The company has decreased its debt by 225.97 Cr.
Over the past 3 years, the company has been maintaining a healthy ROE of 21.85%.
Over the past 3 years, the company has been maintaining a healthy ROCE of 23.25%.
Weakness
The company has no weakness till now.
TGV Sraac Ltd. shows improving profitability, low financial leverage, and potential undervaluation based on key financial ratios.
Vardhman Special Steels Ltd.
About Vardhman Special Steels Ltd.
Company: Vardhman Special Steels Limited (VSSL)
Industry: Special and Alloy Steel Manufacturing
Founded: 1973
Headquarters: Ludhiana, Punjab, India
Website: https://www.vardhman.com/
Vardhman Special Steels Limited (VSSL) is a capital goods sector company listed in both BSE and NSE. The company engaged in the production of Hot rolled bars, Bright Bars, and Special and Alloy steels for diverse applications.
| Market Cap | 1701.70 Cr. |
| PE | 23.42 |
| PB | 2.56 |
| Dividend Yield | 0.96 % |
| Book Value | 84.12 |
| Cash | 9.61 Cr. |
| Debt | 142.92 Cr. |
| EPS | 8.92 |
| Sales Growth | 26.78 % |
| ROE | 10.93% |
| ROCE | 20.25 % |
| Profit Growth | -0.30 % |
Strengths
Over the past 3 years, the company has shown a good profit growth of 210.98%.
Over the past 3 years, the company has shown a good revenue growth of 27.04%.
Weakness
Till now the company has no Weakness.
VSSL is showing impressive profitability, strong solvency, and adequate liquidity based on key financial ratios. It has been consistently growing its profits and margins, which indicates good financial health.
Andhra Paper Ltd.
About Andhra Paper Ltd.
Industry: Paper Manufacturing
Founded: 1964
Headquarters: Rajahmundry, Andhra Pradesh, India
Website: https://www.andhrapaper.com/
Employees: Around 2,500
Andhra Paper Ltd. Is a paper and paper products sector company listed in both BSE and NSE. The company is one of the largest integrated paper and pulp manufacturers in India. The company engaged in the production of writing and printing papers, copier papers, and specialty papers.
| Market Cap | 586.18 Cr. |
| PE | 4.77 |
| PB | 1.24 |
| Dividend Yield | 0.96 % |
| Book Value | 462.72 |
| Cash | 47.37 Cr. |
| Debt | 47.40 Cr. |
| EPS | 114.46 |
| Sales Growth | 51.98 % |
| ROE | 25.90 % |
| ROCE | 51.07 % |
| Profit Growth | 273.90 % |
Strengths
Over the past 3 years, the company has shown a good profit growth of 34.88%.
Over the past 3 years, the company has shown a good revenue growth of 18.22%.
Over the past 3 years, the company has been maintaining a healthy ROCE of 22.97%.
The company is almost debt-free.
Weakness
As of now, the company has no weaknesses.
Based on the fundamentals Andhra Paper Ltd shows improving profitability, low financial leverage, and potential undervaluation
Shreyans Industries Ltd.
About Shreyans Industries Ltd.
Company: Shreyans Industries Ltd.
Industry: Paper and Textiles
Founded: 1979
Headquarters: Ludhiana, Punjab, India
Shreyans Industries Ltd. is a paper and paper products sector company listed in both BSE and NSE. The company engaged in paper production and textiles production. Major products of the company are, Writing and printing paper, notebooks, diaries, Cotton yarn, knitted fabrics, etc.
| Market Cap | 348.60 Cr. |
| PE | 3.61 |
| PB | 1.01 |
| Dividend Yield | 1.98 % |
| Book Value | 265.59 |
| Cash | 5.62 Cr. |
| Debt | 40.63 Cr. |
| EPS | 69.91 |
| Sales Growth | 48.10 % |
| ROE | 27.91 % |
| ROCE | 31.27 % |
| Profit Growth | 637.81 % |
Strengths
Over the past 3 years, the company has shown a good profit growth of 31.97%.
Over the past 3 years, The company has shown a good revenue growth of 17.01%.
The company has decreased its debt by 18.97 Cr.
Shreyans Industries Ltd. shows moderate profitability, strong liquidity and solvency, and potential undervaluation based on its fundamentals.
Read more: Most Important Financial Ratios
Conclusion:
Investing in fundamentally strong but undervalued stocks can reward more to those who are looking to build wealth. Investing in these companies with solid fundamentals trading at a discounted price can generate returns while minimizing downside risk.